Electronic Arts Stock Buy Hold or Sell Recommendation
| EA Stock | USD 118.68 1.58 1.35% |
Allowing for the 90-day total investment horizon and your complete indifference towards market risk, our recommendation regarding Electronic Arts is 'Buy'. Macroaxis provides Electronic Arts buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding EA positions.
Check out Electronic Arts Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Electronic Stock refer to our How to Trade Electronic Stock guide. In addition, we conduct extensive research on individual companies such as Electronic and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Electronic Arts. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
Electronic |
Execute Electronic Arts Buy or Sell Advice
The Electronic recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Electronic Arts. Macroaxis does not own or have any residual interests in Electronic Arts or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Electronic Arts' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Buy
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Not Available | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Electronic Arts Trading Alerts and Improvement Suggestions
| Electronic Arts generated a negative expected return over the last 90 days | |
| Over 98.0% of the company shares are held by institutions such as insurance companies | |
| On 18th of December 2024 Electronic Arts paid $ 0.19 per share dividend to its current shareholders |
Electronic Arts Returns Distribution Density
The distribution of Electronic Arts' historical returns is an attempt to chart the uncertainty of Electronic Arts' future price movements. The chart of the probability distribution of Electronic Arts daily returns describes the distribution of returns around its average expected value. We use Electronic Arts price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Electronic Arts returns is essential to provide solid investment advice for Electronic Arts.
| Mean Return | -0.37 | Value At Risk | -2.32 | Potential Upside | 1.58 | Standard Deviation | 2.43 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Electronic Arts historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Electronic Arts Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Electronic Arts or Entertainment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Electronic Arts' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Electronic stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.39 | |
β | Beta against Dow Jones | 0.08 | |
σ | Overall volatility | 2.43 | |
Ir | Information ratio | -0.19 |
Electronic Arts Volatility Alert
Electronic Arts exhibits very low volatility with skewness of -5.27 and kurtosis of 35.17. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Electronic Arts' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Electronic Arts' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Electronic Arts Fundamentals Vs Peers
Comparing Electronic Arts' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Electronic Arts' direct or indirect competition across all of the common fundamentals between Electronic Arts and the related equities. This way, we can detect undervalued stocks with similar characteristics as Electronic Arts or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Electronic Arts' fundamental indicators could also be used in its relative valuation, which is a method of valuing Electronic Arts by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Electronic Arts to competition |
| Fundamentals | Electronic Arts | Peer Average |
| Return On Equity | 0.14 | -0.31 |
| Return On Asset | 0.0727 | -0.14 |
| Profit Margin | 0.14 % | (1.27) % |
| Operating Margin | 0.21 % | (5.51) % |
| Current Valuation | 30.1 B | 16.62 B |
| Shares Outstanding | 262.27 M | 571.82 M |
| Shares Owned By Insiders | 0.18 % | 10.09 % |
| Shares Owned By Institutions | 98.26 % | 39.21 % |
| Number Of Shares Shorted | 6.74 M | 4.71 M |
| Price To Earning | 40.12 X | 28.72 X |
| Price To Book | 4.15 X | 9.51 X |
| Price To Sales | 4.15 X | 11.42 X |
| Revenue | 7.56 B | 9.43 B |
| Gross Profit | 5.82 B | 27.38 B |
| EBITDA | 1.99 B | 3.9 B |
| Net Income | 1.27 B | 570.98 M |
| Cash And Equivalents | 1.87 B | 2.7 B |
| Cash Per Share | 6.79 X | 5.01 X |
| Total Debt | 1.95 B | 5.32 B |
| Debt To Equity | 0.28 % | 48.70 % |
| Current Ratio | 1.34 X | 2.16 X |
| Book Value Per Share | 28.15 X | 1.93 K |
| Cash Flow From Operations | 2.31 B | 971.22 M |
| Short Ratio | 3.29 X | 4.00 X |
| Earnings Per Share | 3.90 X | 3.12 X |
| Price To Earnings To Growth | 1.85 X | 4.89 X |
| Target Price | 148.46 | |
| Number Of Employees | 13.7 K | 18.84 K |
| Beta | 0.78 | -0.15 |
| Market Capitalization | 30.71 B | 19.03 B |
| Total Asset | 13.42 B | 29.47 B |
| Retained Earnings | 7.58 B | 9.33 B |
| Working Capital | 1.16 B | 1.48 B |
Note: Disposition of 114 shares by Andrew Wilson of Electronic Arts at 143.4175 subject to Rule 16b-3 [view details]
Electronic Arts Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Electronic . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 92461.96 | |||
| Daily Balance Of Power | 0.622 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 117.56 | |||
| Day Typical Price | 117.93 | |||
| Price Action Indicator | 1.91 | |||
| Period Momentum Indicator | 1.58 |
About Electronic Arts Buy or Sell Advice
When is the right time to buy or sell Electronic Arts? Buying financial instruments such as Electronic Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Electronic Arts in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Companies that provide goods across residential, commercial and industrial construction such as machinery, tools, or lumber production. The Manufacturing theme has 20 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Manufacturing Theme or any other thematic opportunities.
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Check out Electronic Arts Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Electronic Stock refer to our How to Trade Electronic Stock guide.You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Is Interactive Home Entertainment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Electronic Arts. If investors know Electronic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Electronic Arts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Electronic Arts is measured differently than its book value, which is the value of Electronic that is recorded on the company's balance sheet. Investors also form their own opinion of Electronic Arts' value that differs from its market value or its book value, called intrinsic value, which is Electronic Arts' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Electronic Arts' market value can be influenced by many factors that don't directly affect Electronic Arts' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Electronic Arts' value and its price as these two are different measures arrived at by different means. Investors typically determine if Electronic Arts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Electronic Arts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.